QBOL1 Manual

Online Edition
Learning Manual
Mastering QuickBooks © Learning Manual
Copyright
Copyright© 2020 by David J. O’Brien and/or National Real World Training, Inc. All
rights reserved. Screen shots© Intuit Inc. All rights reserved. This publication, or any
part thereof, may not be reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopying, recording, storage in an
information retrieval system, or otherwise, without the prior written permission of
David J. O’Brien or National Real World Training, Inc.
Trademark Acknowledgements
Intuit, QuickBooks, QuickBooks Pro, TurboTax, ProSeries, Lacerte, and QuickZoom
are registered trademarks of Intuit Inc. Windows, Microsoft, Excel, and Outlook are
registered trademarks of Microsoft Corporation. Other brand names and product
names are trademarks or registered trademarks of their respective holders.
Disclaimer
These training materials are provided without any warranty whatsoever, including,
but not limited to, the implied warranties of merchantability or fitness for a particular
purpose. All names of persons or companies in this manual are fictitious unless
otherwise noted.
Real World Training

5501 LBJ Freeway, Suite 180
Dallas, TX 75240-5225
Phone (214) 515-0577
Fax (214) 515-0580
www.quickbookstraining.com
Day 1 Agenda
During webinars, all times listed below are in Central Time.
Seminar Welcome ............................................................. 9:30
Chapter 1: Quickbooks Online Setup
Chapter 2: Getting Around
Break ................................................................... 10 minutes
Chapter 3: Lists
Chapter 4: Financial Statements
Chapter 5: Products and Services
Lunch Break ....................................................................1 hour
Chapter 6: Money In I
Chapter 7: Money In II
Break ................................................................... 10 minutes
Chapter 8: Customizing QuickBooks
Chapter 9: Saving Time
Chapter 10: Estimates
Chapter 11: Sales Tax
Class Dismissed ................................................................ 5:00

Day 2 Agenda
During webinars, all times listed below are in Central Time.
Seminar Welcome ............................................................. 9:30
Chapter 12: Money Out I
Chapter 13: Money Out II
Break ................................................................... 10 minutes
Chapter 14: Online Banking
Chapter 15: Reconciliation
Lunch Break ....................................................................1 hour
Chapter 16: Mobile App
Chapter 17: Working with Reports
Chapter 18: Accounting Tasks
Break ................................................................... 10 minutes
Chapter 19: Payroll Setup
Chapter 20 Payroll Cycle
Chapter 21: Inventory
Class Dismissed ................................................................ 4:50
Q and A
Day 1- Table of Contents
Select the headers below to be taken to the content
Chapter 1: Setup ................................................................................................ 1

Introduction ......................................................................................................... 2
Setting Up QuickBooks ..................................................................................... 4
Create QuickBooks Account............................................................................. 4
Customize/Personalize QuickBooks ................................................................ 6
Import Data ......................................................................................................... 8
Enter Opening Balances ................................................................................. 11
Link Bank Accounts .......................................................................................... 12
Test Drive QuickBooks Online ....................................................................... 12
Chapter 2: Getting Around ............................................................................ 13
Dashboard ......................................................................................................... 14
Moving Around in QuickBooks ...................................................................... 15
What You See on Screen ................................................................................. 18
Chapter 3: Lists ................................................................................................. 19
List Types ........................................................................................................... 20
Names Lists ....................................................................................................... 20
Work With Lists ................................................................................................. 21
Chapter 4: Financial Statements ................................................................... 29
Financial Statements ........................................................................................ 30
Account Category Types ................................................................................. 33
Add Accounts/Subaccounts ........................................................................... 34
Collapse Financial Statements ....................................................................... 36
Journal Entries .................................................................................................. 37
Cash vs Accrual ................................................................................................. 38
Chapter 5: Products and Services ................................................................. 39
Products and Services Settings ...................................................................... 40
Understanding Products and Services .......................................................... 41
Add Products and Services ............................................................................. 42
Chapter 6: Money In-I ..................................................................................... 47
Customers ......................................................................................................... 48
Methods to Record Sales ................................................................................ 51
Method 1-Invoice ............................................................................................. 51
What is Accounts Receivable? ........................................................................ 52
Undeposited Funds ........................................................................................ 54
Chapter 7: Money In-II .................................................................................... 55
Method 2-Sales Receipts ................................................................................. 56
Method 3-Make Deposits ................................................................................ 57
Method 4-Import from Other Program ......................................................... 58
Refund Receipt ................................................................................................. 59
Credit Memos ................................................................................................... 60
Customer Statements ...................................................................................... 62
Reports ............................................................................................................... 64
Chapter 8: Customize QuickBooks ............................................................... 65
Company Settings ............................................................................................ 66
Customer Label ............................................................................................... 66
Customize Forms .............................................................................................. 67
Customize Email Template ............................................................................ 70
Chapter 9: Save Time ...................................................................................... 73
Find Transactions ............................................................................................. 74
Recurring Transactions .................................................................................... 77
Shortcuts ............................................................................................................ 78
QuickBooks Online Payments ........................................................................ 79
Chapter 10: Estimates .................................................................................... 81
Invoice Based on Estimate .............................................................................. 83
Progress Invoicing ........................................................................................... 84
Chapter 11: Sales Tax ..................................................................................... 85
Set Up Sales Tax ............................................................................................... 85
Nontaxable Customer Setup .......................................................................... 87
Invoice Sales Tax............................................................................................... 89
Pay Sales Taxes ................................................................................................. 90
Day 2- Table of Contents
Select the headers below to be taken to the content.
Chapter 12: Money Out I ................................................................................ 91

Vendors .............................................................................................................. 92
Method 1- Track Accounts Payable ............................................................... 94
Advantages of Bills .......................................................................................... 95
Method 2- No Accounts Payable .................................................................. 97
Record a Check ................................................................................................ 97
Enter Expenses ................................................................................................. 97
Reports .............................................................................................................100
Chapter 13: Money Out II ............................................................................ 101
Credit Cards .................................................................................................... 102
Vendor Credit Memos ................................................................................... 106
Void vs. Delete Checks .................................................................................. 108
Chapter 14: Online Banking ....................................................................... 109
Add Bank Account ......................................................................................... 110
Set Up Online Banking .................................................................................111
Online Banking Center .................................................................................. 113
Manage Downloaded Transactions ............................................................ 114
Add Downloaded Expenses ........................................................................ 116
Recognized Transactions ............................................................................. 117
What Gets Downloaded ................................................................................ 118
Manage Downloaded Deposits ................................................................... 119
Add Split Transactions ................................................................................... 120
Exclude Transactions ..................................................................................... 121
Transfers ..........................................................................................................122
Credit Card Payments .................................................................................... 123
Personal Expenses ........................................................................................ 124
Chapter 15: Reconcilation ........................................................................... 125
Reconcile Bank Account ................................................................................ 126
Reconciliation Difference ............................................................................. 128
Reconciliation Report ....................................................................................129
Chapter 16: Mobile App .............................................................................. 131
Install Mobile App .......................................................................................... 132
Mobile App Dashboard ................................................................................. 133
Moving Around in QuickBooks Mobile ....................................................... 134
View Customer/Vendor Information ........................................................... 137
Online Banking in App .................................................................................. 138
Run Reports ..................................................................................................... 139
Record Transactions....................................................................................... 142
Chapter 17: Working with Reports ............................................................ 145
Run Reports ..................................................................................................... 146
Types of Reports ............................................................................................. 147
Date Range ..................................................................................................... 150
Modify Reports-General ................................................................................ 150
Modify Reports-Numbers .............................................................................. 151
Modify Reports-Rows/Columns .................................................................... 153
Modify Reports-Filters.................................................................................... 156
Modify Reports-Header/Footer .................................................................... 158
Save Report Customizations ......................................................................... 159
Email & Schedule Reports ............................................................................. 160
Chapter 18: Accounting Tasks .................................................................... 163
Account Numbers .......................................................................................... 164
Set Closing Date ............................................................................................. 165
Manage Users ................................................................................................. 166
Audit Log .........................................................................................................168
Chapter 19: Payroll Setup ........................................................................... 169
Enable Payroll ................................................................................................. 170
Start Payroll Setup .......................................................................................... 171
Enter Company Information ......................................................................... 173
Employee W-4 Information ........................................................................... 176
Employee Payroll Schedules ........................................................................ 177
Employee Pay Types ..................................................................................... 177
Employee Deductions/Contributions ......................................................... 178
How to Pay Employees ................................................................................. 178
Employee Setup Complete ........................................................................... 179
Set Up Payroll Taxes ....................................................................................... 180
Payroll Tax-Federal Tax Details .................................................................... 181
Payroll Tax- State Tax Details ........................................................................ 181
Direct Deposit Setup ..................................................................................... 182
Add Employees After Setup ......................................................................... 184
Chapter 20: Payroll Cycle ............................................................................ 185
Pay Employees ................................................................................................ 186
View Tax/Payments .......................................................................................188
Pay Non-Tax Liabilities .................................................................................. 191
Chart of Accounts: Payroll Liabilities ..........................................................191
Pay Deductions .............................................................................................. 192
Chapter 21: Inventory .................................................................................. 193
Track Inventory ............................................................................................... 194
Inventory Reports ........................................................................................... 198
Adjust Inventory.............................................................................................. 199
Chapter 1
QuickBooks
Online Setup
Page 1
Introduction
Welcome to Day 1 of the Mastering QuickBooks seminar. Using QuickBooks software
effectively for your business is the focus of this seminar.
Goals/Learning Objectives
• Learn the features and capabilities of QuickBooks.
• Learn the most common problems (and their fixes!) in each area of QuickBooks.
• Discover the tricks and tips of QuickBooks to help you use QuickBooks to its
fullest potential.
About Intuit
Intuit Inc. is a leading provider of business and financial management solutions for
small businesses, consumers and accounting professionals. Its flagship products and
services, including QuickBooks®, Quicken® and TurboTax® software, simplify small
business management and payroll processing, personal finance, and tax preparation
and filing. ProSeries® and Lacerte® are Intuit's leading tax preparation software suites
for professional accountants. For more information, visit www.intuit.com on the
internet.
About Real World Training

Real World Training was founded in 1992 by David J. O'Brien, CPA. Initially the
company provided one-on-one accounting software training to small businesses. In
1994, the company began focusing exclusively on QuickBooks and began offering
training courses on the program. In 1996, Real World Training developed the
Mastering QuickBooks seminar. Since that time, Real World Training has taught over
1,500,000 students how to master QuickBooks for their business. For more
information on Real World Training or to see seminar schedules online, visit
www.quickbookstraining.com on the internet.
Page 2 QuickBooks Online Setup - Day 1: Chapter 1

QuickBooks Online
If you use QuickBooks Online, your screen will look like this:
Desktop Editions (Pro, Premier, Enterprise Solutions)

If you use one of the desktop editions of QuickBooks, your screen will look like this:
Mastering QuickBooks Online Level 1 Page 3

Setting Up QuickBooks
There are 5 steps to setting up and getting started using QuickBooks Online.
1. Create QuickBooks Account
This is how you create your company in QuickBooks.
2. Customize/Personalize QuickBooks
Customize your settings and invoices to make QuickBooks work best for you. Also,
invite other people to your company file and set up their permissions.
3. Import Lists or QuickBooks Desktop Data
If you are coming to QuickBooks Online from QuickBooks Pro or Premier, you can
import your company file to your QuickBooks Online account and your transactions,
lists, and opening balances will come over during that process. If you are coming to
QuickBooks Online from another accounting program that is not QuickBooks Pro or
Premier, you can import your lists (customers, vendors, chart of accounts, products
and services) using CSV or Excel files.
4. Enter Opening Balances
Entering account balances is necessary to get complete and accurate financial
statements. Opening balances become the “starting point” for your business because
they catch QuickBooks up to how much you had in a bank account, or owed on a
credit card, as of a specific date that you choose. Most businesses choose the
beginning of a fiscal year as the starting point for their QuickBooks data, so the
balance of an account on that date is used to set up its opening balance. You can
find that number on your bank and credit card statements.
5. Link Your Bank Account
This helps you add and categorize bank transactions going forward. It also makes
reconciliations significantly easier, which you’ll learn about later in the training.
Step 1: Create QuickBooks Account

Getting started with QuickBooks Online for your own business is easy. Just follow the
steps below to start a free trial.
Choose an Edition and Start a Free Trial

There are several editions of QuickBooks. Each edition includes basic features such
as check writing, entering sales, and additional features and capabilities to support
your growing business. To review features and compare current online editions, visit
https://quickbooks.intuit.com/online/compare/.
Note: The QuickBooks Online setup steps frequently change. The screenshots you
see in this part of our manual may not match exactly to what you see on the site.

Start Free Trial
1. Open an internet browser (Intuit recommends Chrome).
2. Browse to https://quickbooks.intuit.com/pricing/.
3. Click Free Trial.
4. Click Try it free below the edition of your choice.
5. Complete the enrollment form and click Create Account.
6. Make the appropriate selections in the screens displayed by QuickBooks Online.
Setup
Answer a few questions about your business to help QuickBooks set up your
business.

Step 2: Customize/Personalize QuickBooks
During account creation you might be asked how you plan to use QuickBooks. Pages
like these help QuickBooks customize your account to best suit your company’s
needs. Anything you select/change can be customized later.
Accountant View vs. Business View

Based on your choice in the screen below, your QBO account will be in “Accountant
View” or “Business View.” These different views slightly alter the names of some
transactions, but QBO still operates in the same way, regardless of your choice. You
can also change this choice in your company’s Advanced settings later.

Review/Update Company Settings
After setup, you may want to customize your QuickBooks settings and forms to suit
your needs. You learn about personalizing QuickBooks throughout this class.
Click the Gear menu and select Account and Settings.
Make the appropriate selections in the Account and Settings page.
Click Done.

Step 3: Import Data
Import Company File from QuickBooks Pro/Premier
If you have your accounting information in a QuickBooks Pro or Premier company file,
you can copy the data to you QuickBooks Online account. The process takes a few
minutes, and most of your transactions, lists, and account balances are brought over.
Export Company File to QuickBooks Online

Within QuickBooks Desktop, click the Company menu and select Export Company
File to QuickBooks Online.
Follow the onscreen instructions.

Tips for a Successful Conversion
There are a few tasks you should complete in your desktop company file before you
convert it to QuickBooks Online.
Before you Convert to QuickBooks Online

• Reconcile your Checking and Credit Card accounts
• Pay Sales and Payroll Taxes
• File Payroll quarterly forms (you’ll need to set up payroll again in QuickBooks
Online)
After you Convert

Open your QuickBooks desktop company and QuickBooks Online company at the
same time. Run the following reports in both and compare. The balances should
match.
• Profit and Loss Standard
• Balance Sheet Standard
• A/R Aging Summary
• A/P Aging Summary

Import Lists from CSV or Excel Files
If you currently use QuickBooks Pro or Premier, your lists are imported during the
conversion to QuickBooks Online. However, if you use a different accounting
program, you can import lists with CSV or Excel files. Just export the lists you want to
bring into QuickBooks, such as your list of customers, and use the menu below to
bring them into QuickBooks.
Click the Gear menu and select Import Data.
Select the kind of data you want to import into QuickBooks.

Step 4: Enter Opening Balances
If you currently use a desktop edition of QuickBooks, account opening balances will
be included during the conversion to QuickBooks Online. However, if you use
another accounting program, you will need to enter opening balances for most
accounts on your Balance Sheet. Opening balances serve as your “starting point” for
your accounts. They summarize how much money you had in a bank account, or
owed on a credit card/loan, as of a specific day. Typically businesses choose the first
day of their fiscal year as their starting point and use bank and credit card statements
to find out what their balances were on that day.
You have three choices when entering account opening balances:
1. Enter an opening balance as you set up the account.
When you set up a new account on your Chart of Accounts you can enter the opening
balance and the account’s starting point at the bottom right of the New Account
screen.
2. Let the Online Banking feature enter opening balances for you.
When you link a bank or credit card account to QBO, you’re asked how far back you
want it to go to download transactions. This is used to automatically set your starting
date for the account and also the opening balance.
3. Enter a journal entry for opening balances.
This usually requires help from an accountant. Don’t worry if you can’t do it right
away. You can start using QuickBooks now.
Enter Journal Entry for Opening Balances

1. Click the New (+) menu and select Journal Entry.

Step 5: Link Bank Accounts
When you link your checking and credit-card accounts with QuickBooks, you choose
how far back you want QuickBooks to look when it downloads transactions. It’s
generally recommended to start from the beginning of your fiscal year. You can also
tell QuickBooks what transactions to exclude if you download something you’ve
already recorded, or notice a duplicated transaction.
Link Bank Account

Click Banking on the navigation bar.
Click Connect account in the Bank accounts section of the page.
Follow the onscreen instructions.
Test Drive QuickBooks Online

You can practice in QuickBooks using a sample file. Please note: The test drive will
expire and log you out due to inactivity after about an hour and any changes or
transactions you’ve entered will be deleted.
Start Test Drive

Open an internet browser.
Browse to https://qbo.intuit.com/redir/testdrive. You can also do a Google
search for “QBO Test Drive” to find the test drive page.
Enter the provided security code or Captcha.
Click Continue

Chapter 2
Getting
Around
Page 13
Getting Around in QuickBooks Online
Now you learn more about the dashboard and the location of menus that let you to
record new transactions, view historical transactions and access and edit your account
settings. You’ll also learn what transactions are and the value of entering financial
data online so that you can build accurate reports about your business.
Dashboard
The Dashboard provides quick information at your fingertips, including a financial
dashboard, and bank account balances. You can enable Private Mode to hide this
sensitive data if you’re using QuickBooks in a public place.
Display the Home Page

Click Dashboard from the left menu.
Page 14 Getting Around - Day 1: Chapter 2

Moving Around in QuickBooks
You access all the features of QuickBooks Online from three areas:
Navigation bar
New (+) menu
Gear menu (aka, Company menu)
Navigation Bar
The Navigation Bar is the left-most menu on most pages within QuickBooks. It
provides quick access to information about the people you do business with as well
as a history if your business’ financial transactions.

New (+) Menu
The New (+) menu is at the top-left of the screen. It allows you to record your financial
transactions. Note that your menu may look different depending on your settings.
Accountant View:
Business View:
Page 16 Getting Around – Day 1: Chapter 2

Switch Between Views
In this class we use the Accountant View. To stay consistent as you learn the content
feel free to switch over to the Accountant View throughout the class.
Select the Gear icon.
Select Account and Settings from the My Company column.
Select the Advanced tab.
In the User view section, select Edit.
Choose either Business or Accountant view from the dropdown.
Select Save.
Gear Menu (aka. Company Menu)

The Gear menu provides access to company settings, lists, tools, and account
management.

Search/Recent Transactions Menu
The Search/Recent Transactions menu is an easy way to search by transaction
number, date, amount, and name. You can quickly open a recently entered
transaction from the Recent Transactions list.
What You See on a Transaction

All the forms in QuickBooks look similar. This makes it even easier to get around and
enter transactions. Just fill out the “Who?” and the “When” at the top, the “What?”
below, and the amount or the “How Much.”
Parts of a QuickBooks Transaction
1.
2.
3. 4.
Who- Who are you paying or who is paying you?

When- When the transaction happened in the real world.
What- What are you purchasing or selling?
How Much – The amount of money you receive or spend on a transaction.
Page 18 Getting Around – Day 1: Chapter 2

Chapter 3
Lists
Page 19
What are Lists?
QuickBooks uses lists to organize information about the people and businesses you
buy things from as well as the things you buy and sell. Lists help you save time in
several ways:
1. They store information about people and businesses you work with so you can
record transactions more quickly.
2. They help you find transactions you previously entered and also run reports to
see how much money you’ve spent/received with a specific person or
business.
3. They also let you track who owes you money and who you owe money to.
List types
The user interface and functionality of lists is different depending on what type of list
you are working with. For example, with Names lists (Customers, Vendors and
Employees), you have a Center that helps you quickly sort and filter information. On
Other Lists (Chart of Accounts, Terms List, Products and Services List, etc.), your
choices for interaction are more limited but you can still add/remove columns and
resort the list.
Names Lists
Names lists include Customers, Vendors, and Employees. You work with names lists
often and you see them often throughout QuickBooks.
Page 20 Lists – Day 1: Chapter 3

Who Goes on Which Names List?
Customers - This list stores the people or businesses that pay you money for goods,
services and donations. To invoice a company on account or to track sales/donations
by customer, they must be entered as a customer.
Vendors (Suppliers) - This list stores the companies and contractors you pay for
goods or services. To track accounts payable (money you owe on open bills), issue a
1099, or track purchases by person or business, they must be set up as a vendor.
Employees - This list stores employees and their related payroll information. To pay
an employee using payroll or issue a W-2 to an employee, he/she must be entered as
an employee. Note that the Employees List is only for W-2 employees. People you
issue a 1099 to are considered vendors/contractors.
Other Lists
Other Lists include Products and Services, the Chart of Accounts, etc. You use these
lists often because they’re related to transactions, but you don’t need to update them
very often.
All Lists

Work with Lists
Add Entry Before You Need It
1. Open the appropriate list.
2. Click the New (List Name) button.
3. Enter the appropriate information in the window.
4. Click Save.
New Names List Entry
New Other List Entry

Add Entry as You Need It
Open a transaction and enter appropriate information.
Type the name of the new list entry as you want it to appear on the list.
Select Add to add the new entry to the list.
Select the appropriate type (if applicable) and click Save.
Edit Names List Entry

Display the appropriate list.
Select the entry in the list to edit.
Click the Edit button.
Enter or change appropriate information.
Click Save.

Edit Other List Entry
Select the dropdown in the Action column beside the desired list entry.
Click Edit.
Enter or change appropriate information.
Click Save.

List Rules
There is no limit to the number of list entries you can have in QuickBooks.
However, keeping your lists under 10,000 is recommended.
Every entry in the "Display Name As” field for Customers, Vendors and Employees
must be unique. If you want to list the same entity on multiple lists, make sure to
give them different “Display Name As” entries.
Once entered on a list, the name can’t be moved to another list.
Delete Entry (Without Balance)

Delete List Entry- Names List
Select the entry in the list to delete.
Click the drop-down arrow next to the entry to delete and select Make inactive.
Click Yes to confirm the deletion.
Delete List Entry- Other List

Click the drop-down arrow next to the entry to delete and select Make Inactive.
Click Yes to confirm the deletion.

Delete Entry (With Balance)
Deleting a list entry with a balance causes QuickBooks to record adjusting entries to
zero the balance. These adjusting entries vary by what you make inactive.
Delete List Entry-Names List

Click the Make inactive button.
Click Yes to confirm and have QuickBooks make adjusting entries to zero the
balance
Delete List Entry-Other List

Click the Action drop-down menu for the appropriate entry and select Delete.
Click Yes to confirm and have QuickBooks make adjusting entries to zero the
balance.

See Deleted/Inactive Entries
Deleted list entries are hidden from view. However, you can still see them if you want.
View Inactive Entries

Open the appropriate list.
Click the Gear icon and select Include inactive.
Include Inactive- Other Lists
Include Inactive-Names Lists

Merge Entry
Select the entry in the list to merge.
Type the name of what you want to merge it with in the Display Name As field.
Click Save.
Click Yes to merge the list entries.
Note: When merging accounts on the Chart of Account, you can only merge
accounts that are of the same type (e.g. liability, expense).
Page 28 Lists - Day 1: Chapter 3

Chapter 4
Financial
Statements
Page 29
Financial Statements
For those of you who are from a non-accounting background, this chapter will help
you to learn some accounting basics, which leads to understanding more about how
QuickBooks works. You’ll discover the intention behind the Chart of Accounts and
how it relates to two financial statements: the Balance Sheet and the Profit & Loss.
Chart of Accounts
The Chart of Accounts represents the “hub” of your accounting system. Each account
represents something that your business owns/owes or a reason that your business
earns/spends money. As you record transactions, you assign accounts that represent
where the money came from/went to and why. After each transaction, account
balances are updated on your financial statements based on the accounts and
amounts you entered.
For example, you used a debit card in an office supplies store and then later
download the transaction. The first account affected by the transaction is the
Checking account linked to your debit card. That represents where the money came
from/went to. The second account the transaction affects is a summary of why money
was earned/spent…in this case, office supplies. So you would probably use an
expense account named Office Supplies so that you could track how much you’ve
spent on office supplies over time.
Page 30 Financial Statements - Day 1: Chapter 4

Balance Sheet
The Balance Sheet is the financial snapshot or position of your business. If someone
took a photograph of your business right now, it would the Balance Sheet? The
Balance Sheet is comprised of assets, liabilities, and equity.
Assets
Anything owned by your business. Assets include cash/liquid assets like bank
accounts, inventory you plan to sell to customers, fixed assets like vehicles and
equipment, and even receivables that are owed to you by customers.
Liabilities
What your business owes people/companies outside of your business. Liabilities
include credit cards, loans like mortgages and car notes, lines of credit and even
payables that you owe on open bills from vendors.
Equity
What the business owes the owners of the business. Equity is used to track
investments into the business, draws out of the business to pay the owner/partner
and retained earnings. You might also see an account called Opening Balance
Equity, which is a summary of what the business was worth to the owner before the
business started using QuickBooks.

Profit & Loss
This statement is the movie of your business. It measures performance over a
specified time period. This financial statement includes income, costs of goods sold
and expenses.
Income
Income accounts track money that comes into your business through the sale of
goods or services. They’re also used to track income generated through donations
or pledges from donors. Examples include sales and service income.
Cost of Goods Sold
Cost of Goods Sold accounts track the money you spend that is directly related to a
specific sale. This includes the cost of contractors you paid to work on a specific job,
materials that are purchased for a specific customer/project, and even the original
purchase price of inventory that you’ve sold. Note that if you use inventory products
& services, QuickBooks automatically calculates the cost of goods sold for you when
you record your sale of inventory. You learn about this in the Inventory chapter.
Expenses
Expense accounts track what your business spends on regular expenses like rent,
insurance and payroll. Expenses are also often called “overhead” and don’t tend to
increase or decrease based on the work you perform.

Account Types
The most important element when working with the Chart of Accounts is the Account
Category Type. This must be correct, or your financial statements will be wrong!
Account Types-Balance Sheet

QuickBooks Type Description Examples
Bank Your bank accounts Checking and Savings
Accounts Receivable What your customers owe Accounts Receivable
you
Other Current Asset Assets likely to be turned Inventory and Short-term
into cash within 1 year Investments
Fixed Asset Assets expensed over Furniture & Fixtures and
more than 1 year Computer Equipment
Other Asset Assets that do not belong Long-Term Investments
in other types
Accounts Payable What you owe vendors in Accounts Payable
open bills
Credit Card Company credit cards Mastercard and Visa
Other Current Liabilities Liabilities you’ll pay off Sales Tax Payable and
within 1 year Payroll Taxes
Long-Term Liabilities Liabilities that take longer Mortgage Payable
than 1 year to pay off
Equity Owner’s investments and Owner Contribution and
draws out of the business Owners Draw
Account Types-Profit & Loss
QuickBooks Type Description Examples

Income Revenue generated Product Sales and Service
through sales/donations Income
Other Income Income earned outside of Interest Income
normal operations
Cost of Goods Sold Cost you pay for products Materials and Cost of
sold/services performed Sales
Expense Operating expenses and Insurance and Rent
overhead
Other Expense Non-operating expenses Interest Expenses

Add Accounts/Subaccounts
When adding an account, you are required to choose an Account Type and a Detail
Type. This Detail Type selection doesn’t affect your accounting. Just choose a Detail
Type that best sounds like what you’re trying to track.
Accounts
Add Account
Click Accounting on the left navigation bar.
Select Chart of Accounts.
Click the New button at the top right.
Select the appropriate Account Type and Detail Type.
Enter the appropriate information in the remaining fields.
Click Save and Close.

Subaccounts
Subaccounts are used when you need to track more detail associated with an
account. For example, you might have an account called Legal and Professional Fees,
and subaccounts under that called Accounting, Lawyer, and Bookkeeping.
Add Subaccount
Click the New button at the top right.
Select the appropriate Account Type and Detail Type.
Check the box next to Is sub-account and select the appropriate parent account.
Convert an Account to a Subaccount

Click Edit from the dropdown menu beside the account you wish to change to a
subaccount.
Check the box next to Is sub-account and select the appropriate parent account.

Collapse Financial Statements
When running financial statements with subaccounts, the collapse feature allows you
to hide the subaccounts and only show the parent accounts.
Collapse/Expand Financial Statements

Click Reports on the navigation bar.
Select Profit and Loss.
Click the Collapse button to collapse the subaccounts.
Click the Expand button to show the subaccount detail.

Journal Entries
Occasionally, you may need to change the balances of your accounts in the chart of
accounts. Typically account balances should be updated with regular transactions
and not journal entries. However, there are three occasions that might call for a
journal entry:
You need to record something that another transaction just can’t summarize, like
the depreciation of an asset.
You need to fix an error and your account gave you a journal entry to enter.
You’re setting up a new company and need to enter many balances at once.
Add Journal Entry

Click the Global Create menu.
Select Journal Entry.
Enter appropriate Debit and Credit accounts and amounts.
Journal Entry
Profit & Loss Statement After Journal Entry

Cash vs Accrual
When running financial statements, choose the appropriate report basis. Accrual
basis shows transactions in the period when the service was performed or when the
goods were delivered, not when it was paid. Cash Basis shows transactions in the
period when they were paid. You can also change the company setting which sets
your report defaults.
Change Report to Cash Basis

Open the desired financial statement.
Select Cash at the top of the report.
Click Run report.
Change Accounting Method-Company Setting

Click Advanced on the list to the left.
Click in the Accounting section and change the Accounting Method.
Click Save

Chapter 5
Products and
Services
Page 39
Products and Services Settings
Products and Services are the things you charge customers for, whether that happens
to be physical goods, services performed, or even pledges and donations. Reviewing
your products and services settings can help customize QuickBooks to suit your
needs.
Turn Off Products and Services

It’s possible that your business doesn’t need products or services because your
company is small enough that there is no need to separate what you do into separate
categories. If this is the case, you can products and services off in order to remove
certain fields on your sales forms.
Click Sales on the list to the left.
Click in the Products and Services section.
Make the appropriate selections.
Click Save.
Invoice WITHOUT Products and Services

If you turn off products and services, invoices will be categorized on your Profit and
Loss Statement as Services income.
Page 40 Products and Services – Day 1: Chapter 5

Understanding Products and Services
Products and Services can make using QuickBooks easier and provide additional
information to help you run your business. They perform the following functions:
Make it easier to fill out forms by providing default descriptions and sale prices.
Act as pointers to the financial statements. In other words, they handle the behind
the scenes accounting for sales and purchases, routing the correct amounts to
your income and expense accounts.
Can help you track the quantity of products you’ve sold, or hours of services
you’ve charged customers for.
Access the Products and Services List
Products and Services List

Products and Services on Invoice
Add Products and Services

Click the Gear menu and select Products and Services.
Click the New button.
Select the appropriate Type. Non-Inventory is usually something physical that you
sell but you don’t keep track of how many of them you have on hand. Services are
services you charge customers for.
Enter remaining information in the Product/Service Information window.
Click Save and close.

Elements of a Product or Service
1.
2.
3. 4.
5.
The Name of the product or service.

Enter a Description of the product or service. This will appear in the description
field on sales forms that include this item. *
Enter a default Sales Price. *
Choose the account which will track the Income of this items sales.
Select this box if you also purchase this product or service in addition to selling it.
You’ll see additional purchasing information if you select this. *
* These sections are optional. By entering details in this window you’ll save time in the
sales for creation process.

Quantity and Rate
Tracking how much money you’ve made by product or service is great, but you might
also want to know how many hours or units you sold to get to that amount of sales
dollars.
Turn on Quantity and Rate in Settings

Click in the Products and Services section.
Click the box beside Track Quantity and Price/Rate.
Click Save.
Results of Using Quantity and Price/Rate

Reports
Review the Sales by Product/Service Summary
1. Click Reports on the navigation bar.
2. Enter Sales by Product/Service Summary in the search field.
3. Select the Sales by Product/Service Summary report.
By turning on and using the Quantity and Price/Rate feature, you are also able to
track that specific information now when running the Sales by Product/Service
Summary and Detail reports.

Review a Profit and Loss Statement
1. Click Reports on the navigation bar.
2. Select Profit and Loss.
The income from your sales is reported on the Profit and Loss statement. QuickBooks
increases the balance of the income account you assign to each product or service
whenever you record a sale of that product or servce.

Chapter 6
Money In- I
Page 47
Money In Part I
Without your customers you wouldn't have a company. QuickBooks helps you track
your customers’ information, their balances, and who has paid you. This chapter
guides you through setting up customer information, sending and tracking invoices,
and depositing their payments at the bank. You’ll learn about great reports that help
you with collections and help you track who’s overdue. When your customer pays,
QuickBooks helps you close your Invoice and record the deposit at your bank.
Customers
The Customers list stores information about your customers and makes it easy to find
out which customers owe you money, are overdue on payments, etc.
Sales Transactions
You can also see sales transactions in the Sales/Invoicing tab.
Page 48 Money In- I – Day 1: Chapter 6

Add Customers
Click Invoicing or Sales on the navigation bar.
Click Customers.
Click New customer.
Enter the appropriate information in the Customer Information page.
Click Save.
Customer Information
Set up a Sub-Customer
Many businesses have separate jobs with the same customer that they’d like to track
separately for job costing. QuickBooks Online helps you do this with sub-customers.
With sub-customers, you can see your income and expenses for each job, but still bill
the customer for the work that’s been done. This also helps track multiple addresses.
Create New Customer OR Edit an Existing Customer
Select the box next to Is sub-customer
Select the parent customer in the drop-down
Billing Options
If you choose an account in the Bill with Parent drop-down, anytime this sub-
customer is used on a sales form, the parent customer will be billed.
Payment and Billing Information

Methods to Record Sales
There are 4 ways to record sales in QuickBooks.
Invoice - Use this method if a customer owes you money and will pay you later.
Sales Receipt - Use this method if your customer pays you at the time of the sale.
Deposit - Use this method to record income on a deposit, when none of the
previous methods are used.
Import from Other Program- Use this method if you use an integrated app to
capture sales.
Method 1- Invoice
Use this workflow if the customer pays you later. As you enter invoices, Accounts
Receivable increases, and the customer is given a due date to pay their balance.
Steps for Method 1

Create Invoice
Receive Payment
Make Deposit
Step 1. Enter Invoice

Click the New (+) button.
Select Invoice.
Click the customer drop-down arrow and select the appropriate customer.
Click the Product/Service drop-down arrow to add the appropriate products
and/or services.
Click the Save and send drop-down arrow and select the appropriate option.

What is Accounts Receivable?
When you enter an invoice for a customer, QuickBooks tracks the open balance in the
Accounts Receivable account. The balance in this account is the total of all open
invoices you have for your customers. When you apply payment against an invoice,
the balance goes down.
Accounts Receivable Reports

Review Open Customer Invoices
Select Customers.
Click the Unpaid filter at the top of the window.

Review Accounts Receivable Aging Summary
Select Accounts Receivable Aging Summary under Who owes you.

What Is Undeposited Funds?
If you use Undeposited Funds, you can combine multiple customer payments into a
single deposit so that your records in QuickBooks match your bank’s records
exactly. This is the general workflow for sales where a customer is given time between
receiving a product or service and paying.
Rename Undeposited Funds (Optional)
QuickBooks uses an account called Undeposited Funds to hold money received that
is waiting to be deposited. Renaming this account can help you understand where
the money really is. For example, if you keep customer checks and cash payments in
a blue vinyl bank bag, you could rename your Undeposited Funds account to ‘Blue
Vinyl Bank Bag’. If you have multiple places where you keep customer payments
before they are deposited, you can use a generic term like ‘Payments to be
Deposited’.
Click Accounting on the left navigation bar and select Chart of Accounts.
Next to Undeposited Funds (Other Current Asset) click the drop-down arrow in
the Action column and select Edit.
Enter an appropriate account Name.

Step 2. Receive Payment Toward an Invoice
Click the New (+) button
Select Receive Payment.
Click the customer drop-down arrow and select the appropriate customer.
Select the appropriate Outstanding Transaction(s).
Enter a Memo. (Optional)
Click the Save and new drop-down arrow and select the appropriate option.
Step 3. Make Deposit

Click the New (+) button
Select Bank Deposit.
Click the Account drop-down arrow and select the account to deposit to.
Select the payments to deposit.
Enter a Memo. (Optional)
Click the Save drop-down arrow and select the appropriate option.

Chapter 7
Money In- II
Page 55
Method 2-Sales Receipts
Enter sales receipts when your customer pays you in full at the time of the sale. Sales
receipts record income and they also record where the money goes. Whenever
you're receiving money it can go into Undeposited Funds, just like with invoices and
receiving payments, or they can go directly into a bank account. The second step in
this process is a bank deposit.
Steps for Method 2

Create Sales Receipt
Make Deposit as you learned in Chapter 6
Step 1. Create Sales Receipt

Select Sales Receipt.
Enter the appropriate information on the Sales Receipt form.
This would be the time to consider using Undeposited Funds based on the
location of the funds when you receive them as well as the method in which you’ll
be depositing this money into the bank.
Follow the steps from Method 1 to record the deposit.
Page 56 Money In- II – Day 1: Chapter 7

Record Deposit
Method 3-Make Deposits
Use this method to record income on a deposit when none of the other methods are
used. Please note that although money deposited using this method shows on your
financial statements, it will not show on sales reports. If you need the money being
deposited to show on sales reports, use one of the previous methods.
Step 1. Make Deposit

Select Bank Deposit.
Select the appropriate Deposit to account at the top.
Enter appropriate information in the Add New Deposits section of the form.

Method 4- Import from Other Program
With Method 4, another program or app designed for your industry determines how
sales are imported into QuickBooks. You can browse apps at apps.intuit.com.
Learn About Integrated Apps

Click Apps on the navigation bar.
Select an app from the list to review.
Click Try It Free (if available) to start a free trial.
Page 58 Money In II – Day 1: Chapter 7

Refund Receipt
Use this form when you need to give your customer a refund instead of keeping a
credit to use later.
Enter Refund Receipt

Select Refund Receipt.
Enter the appropriate information in the Refund Receipt window.

Credit Memos
Use this form to issue a customer credit for a previously recorded sale. You should
create credit memos if you use sales methods 1 or 2.
Enter Credit Memo

Click the New (+) menu.
Select Credit Memo.
Enter appropriate information in the Credit Memo window.
Credit Memo Applied to Invoice

Review Advanced Automation Setting-Automatically Apply Credits
Click Advanced in the list to the left.
Click in the Automation section.
Check the box next to Automatically apply credits.
Click Save.
Apply the Credit Memo

If you want to select the invoices that the credit memo is applied to, as opposed to
the automation option shown earlier, you may do so by creating a payment that links
the Credit Memo to the Invoice.
Select Credit Memo.
Enter appropriate information in the Credit Memo window.
In the customer center, select the Received Payment option.
In the Amount Received field, enter $0.00 if you’re only applying the credit to the
account, not taking any additional payment from this customer.
Select Save and Close.

Customer Statements
Use statements to remind customers of unpaid balances on their account or send
them a list of transactions that you’ve had with them.
Prepare Customer Statements

Select Customers.
Select the checkboxes for the customers you want to send statements to.
Click the Batch actions button and select Create statements.
Make the appropriate selections in the Statement Settings window.
Click Print or Preview to print the statements, or Save and send to send the
statements to your customers.
Statement Settings-Balance Forward

The customer is sent is a statement that tells them the amount of money that they
owed one day before the Start Date. Then it also lists each individual transaction that
affected their accounts receivable balance between the start and the end date you
entered when setting up the statement.

Customer Statement-Balance Forward
Statement Settings-Open Item

Looking at their statement, a customer might wonder where the “Balance Forward”
came from since it isn’t detailed on the statement. In those situations, an Open Item
statement can be sent as well, or instead. Open Item statements show each “open”
transaction linked to Accounts Receivable, such as unpaid invoices or unapplied
credits and payments.
Customer Statement-Open Item

Statement Settings-Transaction Statement
If you want to tell the customer how much they've spent or donated over a period of
time, run the Transaction Statement.
Customer Statement-Transaction Statement
Review the Sales by Customer Summary

Click the Sales by Customer Summary under Sales and Customers.

Chapter 8
Customizing
QuickBooks
Page 65
Customizing QuickBooks
There are a lot of ways to change how QuickBooks works for you, and in this chapter
you’ll learn customization options for sales and customers.
Customer Label
The Customer label is how you refer to your customers. When you select a customer
label, QuickBooks changes all instances of the word Customer to the label you select.
Customize Customer Label
Click Advanced in the list to the left.
Click in the Other preferences section.
Click the Customer label drop-down arrow and select the appropriate label.
Click Save.
Page 66 Customizing QuickBooks – Day 1: Chapter 8

Custom Fields
Use Custom Fields to add data to sales forms that is not included in QuickBooks. You
can also run reports that include your custom fields.
Add Custom Field
Click the Gear menu and select Company and Settings.
Click in the Sales Form Content section.
Enter the Name for the custom field.
Select the appropriate checkboxes next to Internal or Public.
Click Save.
Customize Forms
QuickBooks provides some customization options for your sales forms. As you make
changes to what appears on your form and how it appears, QuickBooks provides a
preview of the form appearance. If you edit the Standard style your changes apply to
invoices, credit memos and sales receipts. But you can also create new styles that
only apply to a specific transaction type.
Customize Invoice Form

Click the Gear menu and select Custom Form Styles.
Click the New Style button.
Select the form type to customize.
Make appropriate selections on the Design tab.
Make appropriate selections in the Content, Emails, and Payments tabs.

Customize Look and Feel
Sales form content is divided up into three parts: The Header, Table and Footer. The
Header as at the top of the form. While the Table, or body is where the customer
sees what products and services they are being charged and the Footer is at the
bottom of the form.
Customize Form Content- Header

Customize Form Content- Body
Customize Form Content- Footer

Customize Email Template
QuickBooks has a standard email template for your sales forms. But you can
customize this for all of your sales forms, or for individual forms.
Customize Form Messaging
Click the Gear menu and select Company and Settings.

Click in the Messages section.
Enter the appropriate information for the sales form message.
Click Save.

Set Your Custom Form as Default
After creating your own custom form, you can make your form the default
communication sent to customers.
Select the Gear.
In the Company and Settings column, click Custom Form Settings.
To set your template as the default, select the dropdown in the Action tab beside
the template you wish to make default.
Select Make Default.

Editing Default Messaging in Settings
Another location in QuickBooks Online where you’re able to edit default messaging
is found in your Sales Settings. Here you’re able to edit the standard messaging for
numerous communications for both customers and vendors.
Select the Gear icon.
Select the Sales tab.
Edit the message(s) as desired.
Click Save.

Chapter 9
Saving Time
Page 73
Find Transactions
There are a few ways to find transactions in QuickBooks. You can use the
Sales/Invoicing or Expenses lists, and the built-in search function.
Sales Transactions
If you’re looking for a sales transaction, you can look at the Sales/Invoicing tab on the
left navigation bar. Use the Filter drop-down menu to help narrow down the list to
just the transaction(s) you’re looking for.
Find in Sales Transactions List

Click Sales (or Invoicing) in the left navigation bar.
Select All Sales.
Use the filters at the top of the list, or click the Filter button at the top left and
select the appropriate filters and click Apply.
Page 74 Saving Time – Day 1: Chapter 9

Expense Transactions
If you’re looking for an expense transaction, you can look at the Expenses tab on the
left navigation bar. Use the Filter button to help narrow down the list to just the
transaction(s) you’re looking for.
Find in Expense Transactions List

Click Expenses in the left navigation bar.
Select Expenses.
Use the filters at the top of the list, or click the Filter button and select the
appropriate filters then click Apply.
Find in Names List

If you know the name used on a transaction, you can find it using the appropriate
names list.
Open the appropriate names (Customers or Vendors) list.
Select the name from the list.
Find the transaction in the Transactions list.
Click on the transaction to open it.

Search
Use the Search function to find transactions quickly. You can use basic search to find
transactions based on transaction number, date, or amount. Use Advanced Search for
expanded search options.
Transaction Search
Click the search icon.
Enter the search criteria for the transaction and press Enter, or click Advanced
Search.
Enter the appropriate search filters.
Click Search.

Recurring Transactions
Some transactions need to be entered the same way many times. Save time entering
these with recurring transactions. When it’s time to enter the recurring transaction,
QuickBooks will ask you to confirm that you want to enter it.
Set Recurring Transaction

Create a new transaction and add information that will be the same every time.
Click Make Recurring.
Enter the appropriate information for the recurring transaction.
Click Save template.
Quickmath
When you are in a transaction, you can calculate different amounts for products and
services with Quickmath. In any number field, enter a dollar amount and a math
symbol (+, -, *, /). Then enter the number or amount you want to add, subtract,
multiply or divide by and press Tab on your keyboard.

Keyboard Shortcuts
QuickBooks has keyboard shortcuts to make your life easier. To display a list of these
shortcuts, hold down the Control key and press Alt or Option+?. To use a shortcut,
hold down Control or Option+Alt, and the corresponding shortcut key.
Date Shortcuts
Quickly change the date on forms using the keyboard shortcuts in the table below.
+ Increase form number or increase date
- Decrease form number or decrease date
R Changes date to end of year
Y Changes date to beginning of year
M Changes date to beginning of month
H Changes date to end of month
T Changes date to today’s date

QuickBooks Online Payments
QuickBooks Online Payments makes it easy for your customers to pay you online.
When you send your customer an invoice, you can include a Pay Now button that they
can use to enter their payment information. When they do this, QuickBooks enters all
the necessary transactions for you and deposits their payment into your designated
bank account.
Note: Some fees apply for credit card payments. Go to
https://quickbooks.intuit.com/payments/ for more information.
Sign up for QuickBooks Online Payments

Select Payments.
Click Learn more.
Click Finish setup.
Enter the appropriate information in the following sections.
Click Submit.
Edit QuickBooks Payments Settings

Select Payments.
Click the edit icon in the appropriate section, and make any necessary changes.
Click Save.

Use QuickBooks Online Payments-Invoice
Click the New (+) menu and select Invoice.
Enter the appropriate information on the invoice.
Select the options at the top of the form to allow Card or Bank transfer payments.
Click Save and send.
Click Send and close.
Use QuickBooks Online Payments-Sales Receipt

Click the New (+) menu and select Sales Receipt.
Enter the appropriate information on the sales receipt.
Click the Payment method drop-down and select the appropriate payment
method.
Select the checkbox next to Process credit card.
Click Enter credit card details.
If this is a credit card payment, click Swipe card if you have the credit card reader
from Intuit, or enter the customer’s payment information manually.
Click Save.
Click Got it.
Click Save and send.
Click Send and close.

Chapter 10
Estimates
Page 81
What are Estimates?
Estimates are a way to provide your customers with the proposed cost of a job or
service before invoicing them. They are non-posting transactions, so they will not
show up on reports or financial statements.
Record and Send an Estimate

Select Estimate.
Enter the appropriate information in the Estimate window.
Click Save and close (or) Save and Send to email the estimate to your customer.
Page 82 Estimates – Day 1: Chapter 10

Create an Invoice from an Estimate
If your customers request a bid, proposal, or estimate and then you later do the work,
invoicing based on an estimate is the solution. You might want to set up jobs (sub-
customers) to track specific projects for your customers.
Steps for Invoicing Based on Estimate

Create Estimate
Create Invoice
Invoice Based on Estimate

Visit the Customers center.
Select the Estimates filter at the top of the page.
Select Start invoice to the create the invoice for the desired estimate.
On the right side of the invoice, click Add all or select individual estimates to add.

Create Multiple Invoices from a Single Estimate
When you select an estimate to add onto an invoice, you’re given the option to
invoice all or just a portion of the estimate. If you choose to invoice for a portion, this
is called Progress Invoicing.
Select Invoice.
Enter the customer to invoice.
On the right side of the invoice, select individual estimates to add.
Choose to invoice for a percentage of the estimate or choose the specific
products and services to invoice for.
Page 84 Estimates – Day 1: Chapter 10

Chapter 11
Sales Tax
Page 85
What is Sales Tax?
Sales taxes are taxes placed on the sale or lease of goods and services. Sales tax is
governed at the state level in the United States and there is no national sales tax.
Set Up Sales Tax

If you sell taxable goods or services, you’ll need to collect the sales tax for your state
and any other qualifying state. QuickBooks automatically chooses the sales tax rate
based on your location. But if you have a distribution center or an office in another
state, you’ll also need to collect sales tax on sales made in that state. Intuit has
thought of this and during the sales tax setup you can tell QuickBooks you’re
required to collect tax for other states.
Edit Sales Tax Settings

Click Taxes on the navigation bar and select Sales Tax.
Click Set up sales tax.
Make the appropriate selections in the following windows.
Click Got it.
Page 86 Sales Tax - Day 1: Chapter 11

Sales Tax Options for Customers
By default, QuickBooks sets all customers as taxable. If you have a customer who is
tax exempt, you need to change their settings in their customer information.
Set Up Nontaxable Customer

Click Sales on the navigation bar and select Customers.
Click New.
Enter the appropriate information for the customer.
Click the Tax Info tab.
Select the checkbox next to This customer is tax exempt.
Click the Reason for exemption drop-down list and make the appropriate
selection.
Click Save.

Sales Tax Options for Products
Click Sales and select Products and Services.
Edit a product to mark as taxable.
Select the correct category in the Sales Tax Category dropdown.

Taxable Sale
To record a taxable sale, either use a product that you’ve set up as a taxable item, or
check the box beside “Tax” to make an item taxable from the sales form window.
QuickBooks then adds up all of the taxable products and displays them as a Taxable
subtotal. QuickBooks then adds up all of the taxable products and displays them here
as a Taxable subtotal. This is the amount of sales tax the customer will pay. You
collect this amount on the sale, and then later, send this money to the state.
Non-taxable Sale
In order for the sale to include sales tax, two things must be true: the product or
service being sold must be taxable and the customer must be taxable as well. As long
as one of those situations is not true to the sale being made, it will remain nontaxable.

Pay Sales Taxes
When you collect sales tax, you’re in a unique position. Since it’s money you have
that’s owed to someone else, it’s considered a liability on your Balance Sheet.
Whenever you collect sales tax, QuickBooks calculates the tax amount and increases
the account balance for you. When you send the money to the tax agency you
collected for, QuickBooks lowers the balance of the account.
Determine Amount Due

Review Sales Tax Liability Report
Select the Sales Tax Liability report in the Sales Tax section.
Pay Sales Taxes

Click Taxes on the navigation bar, and select Sales Tax.
Click View return next to the appropriate sales tax.
Click the Select Filing Method button.
Select the appropriate filing method based on the options available to you.
Enter the appropriate information in the Record payment window (if filing
manually).
Click Record payment.
Click Close.

Chapter 12
Money Out- I

Vendors
Companies or individuals you purchase goods or services from are called vendors (or
Suppliers in QuickBooks Online Canada). If you need to enter a bill, send a 1099 to a
company or individual, or track purchases by vendor, they must be set up as a
vendor. The Vendors list stores vendor information and makes it easy to filter to see
all vendors, vendors you owe money to and even vendors that you’re overdue on
paying.
Purchase/Expense Transactions
You can also see purchase and expense transactions associated with vendors.
Page 92
Add Vendor
Click Expenses on the navigation bar.
Click Vendors.
Click New vendor.
Enter appropriate information in the Vendor Information page.
Click Save.
Money Out Workflow

Your bookkeeping should accurately mirror the transactions that occur in the real
world as closely as possible. There are two different ways to enter and pay bills. The
method you use depends on if you track accounts payable for a transaction.

Method 1: Use Accounts Payable
What is Accounts Payable?
Tracking accounts payable means that you enter the bill before paying the vendor. If
you track accounts payable, you always know how much you owe vendors for bills.
Expenses are also recorded in the correct accounting period. You will also be warned
when entering duplicate bills.
Not all money out transactions require you to use Accounts Payable. If you pay for
something right away, or you paid it in the past, you won’t need to use Accounts
Payable. You learn how to deal with those kinds of money out transactions later.
Steps if you use Accounts Payable

Enter Bill
Pay Bill (regardless of how you pay the bill: check, credit card, PayPal, cash, other

Advantages of Bills
1. Company Setting-Warn About Duplicate Bills
Click in the Other preferences section.
Click the box next to Warn if duplicate bill number is used.
Click Save.
2. Greater Control over Expenses and Financial Statements

Using Bills allows you to realize the expense on the day of the Bill and not the day of
the Bill Payment.
3. Keep Track of Who you Owe and Bill Due Dates

By using Bills you have access to two important Accounts Payable reports: Accounts
Payable Aging Summary and Detail. Both reports show who you owe, how much you
owe them and if you are overdue. The Summary report shows totals owed to the
vendor whereas the Detail report shows each bill separately.

Step 1. Record Bills
Select Bill.
Enter the appropriate information on the bill.
Should You Record a Bill Payment?

If you enter a Bill in QuickBooks the only way to record the payment is with Pay Bills.
Entering the Bill increases Accounts Payable and your payment lowers Accounts
Payable. It is, however, possible that you’ll also download your bill payments. If you
record a bill and then later download the bill payment, you won’t need to enter it
manually at all. Just visit the Banking Center and you should see the downloaded
transaction “Match” against your bill. If, however, you pay a bill with a check or aren’t
using online banking, you can still enter bill payments manually.

Recording Bill Payments
Step 2. Pay Bills
Select Pay Bills.
Select the appropriate Payment account.
Select the bills you’re paying.
Enter the Payment Date.
Click Save and Close or Save and Print.
Select Bills to Pay
Method 2: No Accounts Payable

If you’ve decided to not track Accounts Payable in QuickBooks,
or you’ve just paid for something that didn’t involve a bill, you
don’t need to use Bills/Bill Payments. Instead, all you have to
record is a Check or Expense. Checks are used for physical
checks that are not connected with a bill. Whether you want to
print them through QuickBooks or record a handwritten check,
Checks are the right transaction to record. If you spent money
through any method other than a check use an Expense instead.
Record a Check
Click the Global Create menu.
Select Check.
Enter the appropriate information on the Check form.
Click Print check to print the check now. Otherwise, click the box next to Print
later to print the check along with other checks later.

Check-To Be Printed Later
Hand-written Check
Printing Checks

Record an Expense
For expenses other than checks and bill payments, use the Expense form. This form
can be used for debit cards, credit card charges, PayPal charges, and other non-
check forms of payment.
Select Expense.
Select the appropriate payment account and Payment method.
Enter appropriate information in the Expense form.
Enter Expense (Credit Card Charge)
Enter Expense (Debit Card)

Reports
Review the A/P Aging Summary
Select Accounts Payable Aging Summary under Who you owe.
Review the Expenses by Vendor Summary

Select Expenses by Vendor Summary under Expenses and Vendors.

Chapter 13
Money Out- II
Page 101
Credit Cards
You handle credit card transactions in much the same way as bank account
transactions. You need to have a credit card account on your Chart of Accounts, and
whenever you purchase something with that credit card, or pay it off, you need to
record it in QuickBooks. You can set up your credit card to download transactions, or
you can record transactions manually.
Set up Credit Card Account

Click New.
Click the Account Type drop-down list and select Credit Card.
Enter the Name of the account.
Enter the Balance on the card, and the date it had that balance (usually it’s best to
find your balance from the beginning of the fiscal year and enter that).
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Record Credit Card Expense
Click the New (+) menu and select Expense.
(Optional) Enter a Payee.
Click the Payment account drop-down and select your credit card account.
Enter the Payment date.
(Optional) Click the Payment method drop-down menu and select the
appropriate payment method.
Click on the first line under Account Details and select the appropriate expense
account.
(Optional) Enter a description.
Enter the amount.

Record Credit Card Payment
Click the New (+) menu and select Expense.
(Optional) Enter a Payee.
Click the Bank/Credit account drop-down and select your bank account.
Enter the Payment date.
(Optional) Click the Payment method drop-down and select the appropriate
payment method.
Click on the first line under Account Details, and select the credit card account.
(Optional) Enter a description.
Enter the amount.
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Turn on Customer/Project Costs
Click Expenses on the list to the left.
Click in the Bills and expenses section.
Make appropriate selections in the Account and Settings window.
Click Save.

Enter Customer/Project Related Costs
You can enter expenses related to customers/projects by using the Customer field on
expenses, checks and bills.
Select Expense, Check, or Bill.
Use the Customer field to record who/what the expense was for.
Vendor Credit Memos

When a vendor gives you a credit to use on a future bill, enter a Vendor Credit.
QuickBooks will automatically apply this credit to future bills from the same vendor.
Enter Vendor Credit
Select Vendor Credit.
Enter appropriate information in the Vendor Credit window.

Vendor Balance Detail Report
Run a vendor balance detail report to keep track of who your business owes money
to and when it needs to be paid.
Pay Bills- Apply Credit

Select Pay Bills.
Select the appropriate bills to pay (Notice QuickBooks uses available credits).
Click Save and print or Save and close.

Bill Payment Check and Voucher Showing Credit Applied
Void vs. Delete Checks

Void a check if you used the check number but the check will never be cashed.
Delete a check if the check was never written.
Delete a Check
Display the appropriate check.
Click the More button and select Delete.
Click Yes to confirm.
Void a Check
Display the appropriate check.
Click the More button and select Void.
Click Yes to confirm.

Chapter 14
Online
Banking
Page 109
Online Banking
You can potentially download transactions directly from your bank and credit cards
allowing you to skip some of the manual data entry. You’ll learn how to set up a bank
account on your Chart of Accounts, then take a tour of the Banking Center and learn
how to integrate them into your books. You’ll learn the difference between matching
and adding transactions, and situations such as transfers, credit card charges and
payments.
Add Bank Account

Managing your bank and credit card accounts in QuickBooks is free and easy to use.
After you add your bank account to QuickBooks you choose how far back you want
QuickBooks to go when downloading historical transactions. After that, it’s easy to
add and match transactions that are automatically downloaded as they clear your
bank.
Option 1: Add Bank Account to Chart of Accounts

Select Chart of Accounts at the top of the page.
Click New.
Enter appropriate information on the new account page.
Click Save.
If you choose to add the bank account to your Chart of Accounts, you will upload the
bank transactions from your downloaded bank statements on a regular basis.
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Set Up for Online Banking
Click Add account.
Enter your bank name or online banking URL, or select from a list of popular
banks.
Enter the login information you use to access your account on your bank’s
website.
Click Sign in.
Click the drop-down list next to each account you want to connect and select the
bank or credit card account on your chart of accounts.
Click Connect.
The Online Banking Center
Add Account

Login to Your Bank Account
Connect Your Accounts
If you connect your bank account, you’ll be able to download previous transactions
into your banking center. Future transactions in your bank account will be
automatically downloaded into your QuickBooks Banking Center.

The Online Banking Center
After you’ve connected your bank account to QuickBooks, you’re ready to update
QuickBooks with new bank activity. You manage this process through the Online
Banking Center.
Note: Each connected account shows a Bank Balance and an In QuickBooks balance.
These balances will often differ from each other as the Bank Balance is based on
transactions that have cleared the bank account, and the QuickBooks Balance is
based only on transactions that have been recorded in QuickBooks.
Online Banking Center Processes

The Bank and Credit Cards page is where you perform all your online banking tasks.
• File upload
Click File upload to upload a list of transactions from your bank. Note that you
won’t need to do this if you choose to connect your bank to QuickBooks.
• Link account
Click Link account to connect a new account to QuickBooks.
• For Review
The For Review tab lists transactions downloaded from your bank that haven’t
been added or matched to existing transactions in QuickBooks. Until these
transactions are added or matched, they have no impact on your accounting
records.
• Categorized
The Categorized tab lists transactions you have matched or added to QuickBooks.
This tab does NOT show transactions that you manually entered into QuickBooks.
• Excluded
The Excluded tab lists transactions you have chosen to exclude, such as duplicate
transactions or transaction history you don’t need in QuickBooks. You can undo
this action at any time.

Open the Online Banking Center
Select an account from the top of the page.
Manage Downloaded Transactions

There are two types of downloaded transactions: ones that you have already entered
into QuickBooks, and ones that have not been entered into QuickBooks.
Match- Transactions that you’ve already entered need to be verified or ‘matched’ to
the downloaded expense. If QuickBooks finds that you’ve already entered something
that it has downloaded, you’ll see “Match” or “View” as an option. By matching a
downloaded transaction with something you’ve already entered, you ensure that the
transaction is not entered twice. QuickBooks attaches the downloaded version to the
version you’ve already entered.
View- If QuickBooks finds that you’ve already entered two or more transactions like
the bank transaction you’ve downloaded, you’ll need to choose the exact transaction
which is a match. The non-selected transaction(s) will remain in the Online Banking
center until action is taken on that remaining transaction.

Review/Match Downloaded Transactions (Already Entered)
On the For Review tab, select a transaction to match.
Select the appropriate match, or click Find match if the transaction was not
matched correctly.
Click Match.
Batch Accept Downloaded Transactions (Already Entered)

On the For Review tab, select all matched transactions.
Check the box to the left of the desired transactions and select Accept.

Add Downloaded Transactions (Not Already Entered)
New transactions that you haven’t recorded in QuickBooks yet can be “added,” which
means that QuickBooks creates a new transaction for you based on the downloaded
information and the information that you add into the transaction, specifically the
Who, When, What and How Much. Sort the list by the column headers to help
organize your work.
When dealing with a new transaction, you’ll see the date it cleared the bank (the
When), how much money it was for (the How Much), and something called the Bank
Detail, which is usually who you paid (the Who). QuickBooks cannot download the
reason Why you spent the money, so you must enter the category, or account, as an
explanation to QuickBooks for why the money was spent or received. In doing so,
you’ll be able to track why you spent or received the money later on your financial
statements.
On the For Review tab, select a transaction to add.
Correct or enter an appropriate name (optional) and account category.
Click Add.
Recognized Transactions
As you add information to downloaded transactions, QuickBooks ‘remembers’ the
accounts and names you’ve added to previous transactions, and prefills some of this
information for you. These transactions are listed together on the Recognized list. You
can batch add these recognized transactions to save time.

Add Downloaded Transactions (Recognized)
Click All transactions at the top of the list and then choose Recognized.
Review the information for new transactions, and make any necessary changes.
Check the box to the left of the desired transactions and select Accept.

What Gets Downloaded
You might be wondering why you would need to manually add anything into
QuickBooks if your transactions are already downloaded from your connected bank
account. Since online banking makes it so easy to enter transactions, it’s tempting to
rely on it to record all of your transactions. However, there are some transactions that
cannot be downloaded from the bank that you still need to enter manually. If you
want QuickBooks to print a check, or if you want to record more specific products
and services a customer purchased from you, you’ll need to enter in those details
through a manually entered transaction.
Transactions You Add Through Online Banking

• Receive Payment (should still be entered manually if it applies to multiple
invoices, or was deposited with other payments)
• Expenses
• Bill Payments (if a bill was paid with a check, it should still be entered manually)
• Credit Card Credit
• Transfers
Transactions You Enter Manually

• Invoices
• Estimates
• Credit Memos
• Sales Receipts
• Refund Receipts
• Delayed Credits
• Delayed Charges
• Checks
• Bills
• Purchase Orders
• Vendor Credits
• Paychecks and Timesheets (third party payroll can sometimes be downloaded
as an expense)
• Deposits

Manage Downloaded Deposits
Deposits you make at the bank can be added through online banking if they’re
deposits for a single transaction. For example, a refund from a vendor. But if a
deposit you make at the bank is for a batch of transactions, such as customer
payments on invoices, you should still record it manually in QuickBooks.
When you receive a refund from a vendor, this effectively reduces the expense you
incurred with that vendor. When the refund is downloaded from the bank, select the
expense account you used on the original expense with the vendor to reduce your
expense account balance on your financial statement.
Review/Add Downloaded Deposits (Not Entered)

On the For Review tab, select the deposit.
(Optional) Add a vendor name.
In the Category field, select the appropriate income or expense account.
Click Add.

Add Split Transactions
When an expense is downloaded that needs more than one expense account
associated with it, you can do this with the Split option.
Review/Add Split Transactions

On the For Review tab, select the transaction.
Click Split Transaction.
(Optional) Add a payee name.

On the first line, select an appropriate account.
On the following lines, select the appropriate expense accounts, and enter the
appropriate amounts (click Add lines if necessary).
Click Save and add.

Exclude Transactions
You can exclude downloaded transactions such as duplicates or transactions that
took place before when you chose to start tracking an account.
Reasons to Exclude Transactions

If you are connecting an account you have used manually in QuickBooks Online
and are now starting to download transactions from your bank and transactions
you’ve already reconciled appear in the Banking Center
If the bank sent the transaction more than once.
If the transaction happened before the starting date/balance for the account. In
other words, if it happened before the “As of” date that you entered for the
account as you set it up.
Exclude New Transactions

On the For Review tab, click the box next to transactions to exclude.
Click Exclude.

Transfers
Transfers are financial transactions that represent you moving money from one bank
account to another. They can be downloaded and added to QuickBooks without
entering them manually first. If you transfer money between two bank accounts that
you’ve connected to download transactions, then you only need to Add the transfer
for one account, and then Match it for the other.
Add Transfers
On the For Review tab, select the transfer.
In the Category field, select the account the money came from (if this is an
increase in the bank account) or the account the money went to (if this is a
decrease in the bank account).
Click Add.

Credit Card Payments
If you pay your credit card balance online or with your debit card, those payments will
be downloaded to the banking center.
Add Credit Card Payments

On the For Review tab, select the credit card payment.
(Optional) Click the Payee drop-down and select a payee.
In the Category field, select the credit card account to apply the payment towards.
Click Add.
Note: If you have your credit card account connected as well, once you Add the
transaction for the bank account, it will show up as a Match on the credit card
account.

Recording a Personal Expense
It’s tempting to want to exclude personal expenses, however, all transactions from
your bank account need to be recorded in QuickBooks in order for you to reconcile
the account. During reconciliations you compare your bank statements to what you
have in QuickBooks to make sure you’ve recorded everything that happened in that
account. If you exclude ANY transactions that appear on your bank statement, you’ll
not be able to reconcile.
Instead of excluding these transactions when they show up, you can use an Equity
account in the Category field to properly record the transaction. Most businesses
have an equity account named Owner’s Draw that is used for these kinds of personal
purchases. If you do not have this on your Chart of Accounts, you can easily create a
new Equity account with this name.

Chapter 15
Reconciliation

Reconcile Bank Account
Trusting your reports and balances in QuickBooks is important. Your task with all
bookkeeping is to record transactions accurately so that they match with the reality of
your business’ bank and credit card accounts. The best way to check for accuracy is
to perform a reconciliation, which is the process of comparing your records in
QuickBooks to the official records you receive from your bank and credit card issuers.
When to reconcile: Real World Training recommends that you reconcile every month
when you receive the bank/credit card’s official statement.
Before you reconcile: To reconcile, you should have last month’s bank statement on
hand for this process, printed if possible.
Reconcile Account
Click the Gear menu and select Reconcile.
Click the Account drop-down arrow and select the appropriate bank or credit card
account.
Enter the Ending balance and the Ending date you see on the statement.
Click the Start reconciling button.
Select the transactions that cleared the bank.
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1 3
What you’ll see on the reconciliations screen...

Reconciliation equation - Throughout the reconciliation process QBO calculates
several numbers. The first is the beginning balance which is the amount you had
in the bank at the beginning of the month. QuickBooks determines this by adding
up all of the transactions you’ve reconciled in the past. The Cleared Balance is the
balance of all the selected transactions. If what’s on the bank statement doesn’t
match what you’ve checked off for your cleared balance, QuickBooks shows you a
difference. That means there’s a difference between what you have in QuickBooks
and what the bank or credit card reports on the statement.
Pre-reconciled transactions - If you use Online Banking, the transactions you’ve
added or matched already have checkmarks. This is one of the great things that
online banking does for you. If you’re using online banking to add and match all
of your transactions you might just see an entire row of checkmarks and you won’t
need to do any more work at all since everything has already been checked
against the bank’s records.
The goal of the reconciliation - The goal is to check off all the transactions that
appear on your bank statement and get a difference of zero!

Completing your Reconciliation
Click Finish Now.
Click View report to open the Reconciliation Report.
Click Print.
Reconcile Completed
What Causes a Reconciliation Difference?

There are a few reasons for a difference between your bank or credit card statement
and what you have in QuickBooks.
The ending balance or date is incorrect. This can be fixed by clicking the Edit
button to change it to what you see on your statement.
You might have a transaction checked on the Reconciliation window that shouldn’t
be. To fix this, just uncheck it in the reconciliation window to remove it from the
balance.
One of the transactions you’ve checked in the reconciliations window is for the
wrong amount. You may edit the balance by clicking on the line of the incorrect
transaction.

Reconciliation Report
It’s important to remember that in most cases you should never change transactions
after they’re reconciled. To track down changes or deletions if they happen, you can
view the History by Account. Here you’ll see a brief summary of your reconciliations
including beginning and ending balances, as well as changes, if any have occurred,
and any adjustments that might have been made while reconciling.

Account Register
Every Balance Sheet account in QuickBooks has a register. A register is a record of all
the transactions you’ve recorded for that account. It shows transactions you manually
added, as well as those you matched and added through the Bank and Credit Cards
page. QuickBooks marks matched/added transactions as “C” cleared and indicates it
was an automatically added transaction. Reconciled transactions are indicated with an
“R”.
Review Bank Account Register

Click Accounting on the navigation bar.
On the Chart of Accounts, click the View register link next to the account.

Chapter 16
Mobile App
Page 131
Install Mobile App
The free mobile app for QuickBooks Online makes it easy to enter sales and expense
transactions, add and match downloaded transactions, and manage lists. You can
install the app on your phone or tablet from the app store for your device.
Browse to the app store on your phone or tablet (App store on Apple® devices,
Google Play store on Android® devices).
Search for ‘QuickBooks Accounting’.
Select the QuickBooks Accounting app in the list of results.
Select the option to Get (Apple) or Install (Android) the app.
Follow the prompts to complete the installation.
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Mobile App Dashboard
The Dashboard in the mobile app displays information about your business such as a
Profit and Loss graph, and an Expenses graph. You also see an Activity list which
shows recent transactions and changes to list entries and company information.
Access Mobile App Dashboard

Browse to the QuickBooks Accounting app on your mobile device.
Enter your login information and select Sign in.

Moving Around in QuickBooks Mobile
You can access all the features in the mobile app from two areas:
Hamburger menu
New (+) menu

Hamburger Menu
The Hamburger menu appears at the bottom right on the IOS app. It provides quick
access to lists you use often as well as common transactions and reports.

New (+) Menu
The New (+) appears at the bottom middle of the app. It allows you to record
transactions for customers and vendors, as well as deposits.

View Customer/Vendor Information
Tap the Hamburger menu.
Select Customers or Vendors.
Select the name you want to view more information for.
Select Activity to see transactions for that name; select Details to see contact
information such as phone number and address.
Select the phone icon to call the customer or vendor.
Select the speech bubble icon to send a text message to the customer or vendor.
Select the envelope icon to email the customer or vendor.
Select the map location icon to get directions to their address.
Select the back arrow (<) to return to the list.

Online Banking in App
When transactions are downloaded from your bank, you can add and/match them
directly in the QuickBooks Online app. There’s no need to wait to get back to the
office to manage your transactions.
Add/Match Downloaded Transactions

Select Banking.
Select the appropriate account.
Select a transaction in the list:
• To Match a transaction, select Accept at the bottom of the screen.
• To Add a transaction, select the appropriate name and account information
and select Accept.

Run Reports
You can run two reports in the QuickBooks Online app: the Profit & Loss Statement
and the Balance Sheet.
Run Profit & Loss

Select Profit & Loss.
Select View Report.
Select the settings icon at the top right to change the date range on the report.

Viewing the Profit and Loss

Run Balance Sheet
Select Balance Sheet.

Record Transactions
You can record sales and expense transactions in the QuickBooks Online app.
Record an Invoice
Tap the New (+) menu.
Select Invoice.
Select a Customer.
Select Add Line Item to add a product or service to the invoice.
Select the product or service from the list.
Enter the Quantity and Rate.
Select Add at the top right.
Repeat steps 4-7 for additional products and services.
Select Save.
Select Send invoice to email the invoice to the customer, then select Send.

Viewing the Invoice Status

Record an Expense
Tap the New (+) menu.
Select Expense.
Enter the amount.
(Optional) Select the camera icon to add a picture of your receipt.
Select the method of payment.
Select the Account the expense was paid from.
Enter the payee in the Who did you pay? field.
Select the appropriate account in the What kind of expense is this? field.
(Optional) Select a customer in the Who was it for? field.
Enter a description in the Anything you need to remember? field.
Select Add a Split if you need to select another account.
(Optional) Enter a Reference # and a Memo.
Select Save.

Chapter 17
Working With
Reports
Page 145
Working with Reports
The reason you use QuickBooks is to get reports. If entering transactions and
performing reconciliations is the work, then reports are the results. Reports you get
out of QuickBooks are only as reliable as the data that you put in, This chapter
teaches you how to find what you’re looking for in the QuickBooks reports center.
Run Reports
The Report Center is where you can find all the reports that help you keep track of
your business. There are four areas of the report list:
• All Reports
A list of all available reports in QuickBooks.
• Custom Reports
Reports that you have customized and memorized for future use.
• Management Reports
Customizable report packet that includes a cover letter, and table of contents.
• Search Box
Just type the name of a report and QuickBooks finds it for you.
Running Reports
Click Run next to the appropriate report or search for a report and press Enter.
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Types of Reports
There are three types of reports in QuickBooks. Each type offers different views of
company information and has varying levels of details.
List Reports
List reports are the most basic kind of report in QuickBooks. They don’t do any
analysis, they only list data. Examples include the Customer Contact List, and the
Invoice List. Lists reports are great if you want to look up a lot of data quickly. They
are good for looking up information and printing or exporting it.

Detail Reports
Detail reports show the transactions that affect balances for customers, vendors,
accounts, or products and services. Examples include the Sales by Customer Detail
report, and Profit and Loss Detail

Summary Reports
Summary reports are the most used of the report types. They show a list of customers,
vendors, products and services, or accounts and information on balances associated
with them without showing the transactions that contribute to that balance. Examples
include the Sales by Customer Summary report, and the Balance Sheet.
Summary reports show you a total but instead of showing you each individual
transaction you’ll see a total for each item, whatever it might be. By clicking on the
total for a particular item, you’ll get a detail report that shows you individual
transactions that make up the total.

Modify Reports – General
Customize Report
Click the Customize button.
Select General.
Changing Date Range

By default, the many reports show the company’s data for the year-to-date, but you
can choose what time period you want more information on like the Previous Quarter.
Now you’ll see all income, cost of goods sold, and expenses for that chosen period of
time.

Modify Reports- Numbers
QuickBooks lets you change how numbers are displayed by dividing them by 1000.
You can also display values without cents. You can even choose how negative
numbers are displayed.
Numbers Without Cents

Collapse/Expand

Modify Reports- Rows/Columns
Customize Report
Select Rows/Columns.
You can change the columns to break up the data in other ways, by selecting
Customize, then Previous Comparison. You also have the option to see a dollar
and/or percentage change for the previous year or period.
Rows/Columns

Sort Order-Descending
It is possible to change the sorting method.
Click the Sort drop down arrow
Select Total in descending order.

Columns-Total By Month
By default, reports show a single column for income, cost of goods sold and
expenses. You can break up the report by dividing the data by days, weeks, months,
quarters and more. Instead of a single column, you can select Display Columns by
and select the desired view (e.g. months).
Modify Reports-Filters
Customize Report
You have the option to change the accounts that are viewed on your reports. This
includes accounts that were used in transactions only (active), all accounts, or only
those with a non-zero balance.

Select from Filters
Select Filter.
These filters represent all the data displayed on the report. Right now, all income,
cost of goods, expense accounts, and all customers, vendors, employees, and other
metrics are building the report. To see income and expenses for a particular
customer (for example), select the checkbox(es) beside the selection(s) you want
details on.
Removing Filters
At the top of the report, QuickBooks shows all of the filters that are currently applied.
Just click the X to remove the filter.

Reporting by Specific Product/Service

Modify Reports- Header/Footer
Customize Report
Select Header/Footer.
In the customize menu, you can change more features of the header or footer. To
remove a section such as company name select the checkbox to the left of the field.
On this menu you can also edit title details and adjust alignment as desired.
Header/Footer
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Save Report Customizations
Click Save Customizations.
Enter the appropriate information for the customized report.
Click Save.
Save Customizations
Groups help you organize your customized reports. This is helpful if you have a lot
of customized reports that you want QuickBooks to access or email for you on a
regular basis.
You can also share this report with other users in your company file, so they can
see it as well.

Run My Custom Report
Click Custom Reports.
Click the name of the report to run.
Email & Schedule Reports

Email Once
QuickBooks lets you schedule reports so you can receive them daily, weekly,
monthly, or twice a month through email. After saving the report customizations,
locate the report in Custom Reports window. The report is sent as a PDF attachment.
Email Report
Run the appropriate report.
Click the email icon at the top of the report.
Click the Email button.
Enter the appropriate information.
Click Send.
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Email Report
Email on Schedule
You can set an email schedule for your customized reports and report groups. By
default, QuickBooks sends the report as a PDF attachment. You can choose to send
the report as an Excel file.
Set Report Email Schedule

Select Custom Reports.
Click Edit next to the appropriate report or report group.
Click the Set email schedule option.
Make the appropriate selections.
(Optional) Select Attach the report as an Excel file.
Click Save.
Mastering QuickBooks Level 1 Page 161

Edit Memorized Report/Report Group
Custom Reports-Email Scheduled
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Chapter 18
Accounting
Tasks

Accounting Tasks
You learn about a variety of important topics in this chapter such as account numbers,
how to create a closing date for your books post-reconciliation or year-end, as well as
how to add and manage users that you can add to your QuickBooks online account.
Account Numbers
Account numbers make it easy for you to standardize your Chart of Accounts. After
you enable account numbers, you must enter an account number for each account.
Ask your accountant for assistance in assigning the appropriate account numbers.
When entering transactions, you can enter the account name or the account number.
Enable Account Numbers

Click in the Chart of accounts section.
Click the box next to Enable account numbers.
Click Save.
Assign Account Numbers

Click the Gear menu and select Chart of Accounts.
Click the edit icon.
Enter the appropriate account numbers in the Number column.
Click Save.
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What is a Closing Date?
The Closing Date in QuickBooks essentially “locks” all of your transactions with a
specific date or any date before that chosen date. That makes it harder to change the
protected transactions. It also restricts the entry of new transactions with that date or
any date before it. To make any changes to the accounting period, a user must know
the closing date password (if you have set one).
Set Closing Date and Password

Click in the Accounting section.
Click the box next to Close the books.
Enter the Closing date.
Click the drop-down arrow and select the appropriate option.
(Optional) Enter the password in the Password and Confirm Password fields.
Click Save.

Manage Users
There are five types of users you can add in QuickBooks.
User Type Description

Standard user You specify the areas of QuickBooks this user can access: All, Accounts
Receivable only, or Accounts Payable only.
Company admin Can access all areas of QuickBooks, including other subscription
services.
Reports only Logs in to a special version of QuickBooks that shows reports only. Can
access all reports except payroll reports, and reports listing contact
information for customers, vendors, or employees. Does not count
toward total user limit. (QuickBooks Online Plus and Advanced only)
Time tracking only Logs in to a special version of QuickBooks that only allows them to fill
out or edit their own time sheets. Does not count toward total user
limit. (QuickBooks Online Plus and Advanced only)
Accountant An accountant user gets special access to QuickBooks Online
Accountant, which has special tools they can use to work with your
data. You can only have two Accountant users.

Add Standard User
Click the Gear menu and select Manage Users.
Click the Add user button.
Select the appropriate User Type, and click Next.
Select the appropriate access rights, and click Next .
Select the appropriate user settings, and click Next .
Enter the new user’s name and email address.
Click Save.
Add Accountant User

Click the Gear menu and select Manage Users.
Click the Accountants tab.
Enter your accountant’s email address, and click Invite.

Audit Log
The Audit Log allows you and your accountant to see almost every activity in
QuickBooks, including when users log in and log out, when transactions are entered,
changed, or edited, and any list activity such as adding or editing list entries.
Run Audit Log

Click the Gear menu and select Audit Log.
(Optional) Click the Filter drop-down arrow to select the appropriate filters.
Click View to open any activity on the Audit Log.

Chapter 19
Payroll Setup
Page 169
Payroll Setup
Before you get too far with Payroll setup, there are a few things you should collect to
have in front of you during the setup process. This way you can complete your Payroll
setup in one session instead of starting and stopping multiple times just to go find the
needed paperwork.
• Federal and state IDs
• Unemployment Insurance Rate
• W4s
• Year-to-date Payroll
• Banking and Routing numbers
Enable Payroll
Before you can use Payroll in QuickBooks, you must turn it on.
Click Workers on the navigation bar.
Select Employees.
Click Get started.
Select your payroll plan.
Page 170 Payroll Setup – Day 2: Chapter 19

Start Payroll Setup
The most important part of using payroll in QuickBooks is the setup. QuickBooks
makes it easy to set up your employees, payment schedules, and taxes.

Setup Payroll
Click Employees.
Click Get started.
Select whether you have paid any W-2 employees in the current year.
Click Next.
Enter the next date when you will run payroll.
Click Done.
Enter your business location details.
Click Done.
Select Let’s Go to add your first employee.
Select Add an Employee
Enter the employees Personal Info
Click Enter W-4 form, fill in requested information, and click Done.
Click Create pay schedule, fill in requested information, and click Done.
Click Add additional pay types to add other payroll types, make appropriate
selections and fill in requested information, and click Done.
Click Add deductions to set up deductions on step 5, make appropriate selections
and fill in requested information, and click OK.
Select the desired method for paying this employee, make appropriate selections
and fill in requested information.
Enter required employees’ birthday and hire date in step 7.
Enter prior pay details (if any) for the employee, to let QuickBooks know how
much you’ve paid this employee so far this year, and click Done.
Complete Steps 10-18 above for each employee until done, then click Continue.
Page 172 Payroll Setup: Day 2– Chapter 19

Enter Company Information
For tax purposes, QuickBooks needs to know about any prior payroll runs made to
your employees during the current year. Note that you can only set this up during the
setup step.

Provide the principal business address to QuickBooks.
Enter in the contact details for your company’s payroll contact.

Add an Employee
Click Employees.
Click Add an Employee.
Complete the forms and pages with appropriate information until done.
Click Done.
Employee Personal Information

If you would like your employees to view their paystubs and W-2s through Intuit
Workforce online, be sure to select the checkbox. You may also have the option to
allow your employee to track and record their hours in “TSheets Online” from this
screen.

Employee W-4 Information
Select + Enter W-4 form.
Enter W-4 withholdings.
Click Done

Employee Payroll Schedules
Adding Additional Pay Types per Employee

Deductions
Deductions / Contributions and Garnishments
How to Pay Your Employee

Enter Prior Payroll Details
Before completing your payroll setup for each employee, QuickBooks will ask you to
provide details about any prior payroll payments that have been made for this
employee during the year. This step is crucial, because without the data in these
fields, you will not be able to create a proper W2 next year that includes all of the
employees pay for the year.
It’s also important that you enter this information now during the payroll setup steps,
because there is no way to backtrack and get back to this screen. This information has
to be entered now, or you will not be able to enter it without contacting QuickBooks
Payroll Support.
Payroll Employee Setup Complete

Set Up Payroll Taxes
When you’re ready to set up your payroll taxes, you need to gather any state and
federal tax notices, and your employee’s W-4 forms. If you have any questions during
this process, ask your accountant for assistance.
Set Up Taxes
Click Taxes on the navigation bar.
Click Payroll Tax.
Click Finish payroll setup.
Click Let’s Go on step 4, Fill in your tax info.
Enter appropriate Business Details, and click Continue.
Enter your Federal tax details and click Continue.
Enter your State tax details and click Done.
Payroll Taxes Setup- Business Details

Payroll Taxes Setup – Federal Taxes
Payroll Taxes Setup – State Taxes
Page 181 Payroll Setup: Day 2 – Chapter 19

Connecting your Bank
Now that you’ve completed your Payroll setup, it’s time to connect your bank.
Because all QuickBooks Online Payroll options now automate the payment of taxes,
every Payroll subscription needs to have an active Bank connection. Additionally, if
you want to utilize Direct Deposit, you’ll need your bank account for that, too.
Direct Deposit Setup

Bank Connection
You are now ready to pay your employees by running payroll.

Add Employees After Setup
After setting up payroll, you can add additional employees using the steps below.
Make sure you have their completed W-4 forms on file.
Select Employees.
Click Add an employee.

Chapter 20
Payroll Cycle
Page 185
Payroll Setup
QuickBooks Online Payroll automates much of your payroll, but you’ll still have to
track your employees time, run payroll, print paychecks, and send direct deposits. In
this chapter you’ll track your employees time, enter it into a payroll run and generate
paychecks. QuickBooks Online figures out the taxes and other liabilities for you and
helps you print, write or direct deposit paychecks for your employees. QuickBooks
also creates your tax forms digitally and sends them to the government along with
your payments. You are responsible for manually paying any non-tax liabilities.
Pay Employees
Click Run payroll.
Enter hours for each hourly employee.
Click Preview payroll.
Review the payroll amounts for each employee.
Click Submit payroll.
Enter remaining information and click Finish Payroll.
Run Payroll

Enter Employee Pay Details
Submit Payroll

Finish Payroll
Employee Paystub
View Taxes and Payments

Intuit takes money out of your real bank account and sends it to the government for
you. As well, all your payroll tax forms are automatically filled out and set on time.
Click Taxes on the navigation bar.
Click Payroll Tax.
Here you can see when the next tax payment will be made, how much will be paid
and a list of your past payments.
Page 188 Payroll Cycle: Day 2– Chapter 20

Payroll Tax Center

View Your Tax Liability Report
Click Reports on the Navigation Bar.
Click Payroll Tax Liability under Payroll to run the report.
Select the desired Date Range.
Click Run Report.

Pay Non-Tax Liabilities
Before you pay your payroll deductions and contributions, review the Payroll
Deductions/Contributions report. This will show you the breakdown of employee
deductions and company contributions for each payroll item.
Chart of Accounts-Payroll Liabilities

QuickBooks Online displays accounts for both tax and non-tax liabilities. QuickBooks
sets these accounts up based on the deductions and contributions created in the
setup process. Balances for these accounts are increased anytime the company
contributes toward the benefit or anytime money is withheld from an employees’
paycheck during the payroll process. To make the payment to the provider, you’re
going to use either an expense, a check or a bill.
Run Payroll Deductions/Contributions Report

Click Payroll Deductions/Contributions under Payroll to run the report.

Pay Deductions and Contributions
Click the New (+) button and select Check.
Click the Choose a payee drop-down list and select the payee.
Click the Account drop-down list and select the liability account for the deduction.
Enter the amount of the payment.
Click the Save and new drop-down arrow and make the appropriate selection.

Chapter 21
Inventory
Page 193
Track Inventory
If you want to track the quantity on hand for a specific product in QuickBooks, you
should set it up as an inventory item. For example, a building supply company buys
doors and doorknobs, and sells them. Those products would be tracked as inventory.
Inventory tracking is not for tracking products that you manufacture. For example, a
bakery that buys flour and sugar, and produces cakes and cookies would not track
inventory for those products.
Enable Inventory
Click in the Products and services section.
Click the box next to Track inventory quantity on hand.
Click Save.
Page 194 Mastering QuickBooks Online Level 1

Add Inventory Item
Click the Gear menu and select Products and Services.
Click the New button.
Select Inventory Item as the Type.
Enter the appropriate information for the inventory item.
Inventory- Day 2: Chapter 21 Page 195

Purchase Orders
Use Purchase Orders to order inventory from your vendors. Purchase Orders are non-
posting entries. This means they don’t affect any accounts when they are entered.
When you receive items from the purchase order, your accounts and quantities on
hand will be updated.
Create Purchase Order

Click the New (+) button and select Purchase Order.
Click the Choose a vendor drop-down arrow and select the vendor.
Enter the appropriate information in the Item details area of the Purchase Order.
Click the Save and send drop-down arrow and make the appropriate selection.
Review Open Purchase Order List

Select Open Purchase Order List under Expenses and Vendors.

Receive Items
When it’s time to receive the inventory into QuickBooks, you can use a Bill, Check, or
Expense form. Use the form that works best for your business.
Click the New (+) menu and select the appropriate form.
Click the Choose a vendor drop-down arrow and select the vendor.
Click the Add button to the right for the products received.
Change any information necessary on the form.
Click the Save and new drop-down arrow and make the appropriate selection.

Inventory Reports
Inventory Valuation Summary
Select Inventory Valuation Summary under Sales and Customers.
Inventory Valuation Detail

Select Inventory Valuation Detail under Sales and Customers.

Adjust Inventory
For a business with inventory, the quantity on-hand is critical information. When you
receive inventory, you add to the on-hand quantity. Selling to a customer reduces the
quantity. If the actual quantity you have on hand differs from the quantity in
QuickBooks, you need to adjust the inventory.
Click Sales from the Navigation Menu

Select Products and Services.
Select the item to adjust and click the Edit button.
Select Quantity on the Quantity on Hand.
Enter the New Qty.


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Online Edition

Real World Training

Seminar Welcome ............................................................. 9:30

Chapter 1: Quickbooks Online Setup

Chapter 2: Getting Around

Break ................................................................... 10 minutes

Chapter 4: Financial Statements

Chapter 5: Products and Services

Lunch Break ....................................................................1 hour

Break ................................................................... 10 minutes

Chapter 8: Customizing QuickBooks

Chapter 9: Saving Time

Chapter 10: Estimates

Chapter 11: Sales Tax

Class Dismissed ................................................................ 5:00

Seminar Welcome ............................................................. 9:30

Chapter 12: Money Out I

Chapter 13: Money Out II

Break ................................................................... 10 minutes

Chapter 14: Online Banking

Chapter 15: Reconciliation

Lunch Break ....................................................................1 hour

Chapter 16: Mobile App

Chapter 17: Working with Reports

Chapter 18: Accounting Tasks

Break ................................................................... 10 minutes

Chapter 19: Payroll Setup

Chapter 20 Payroll Cycle

Chapter 21: Inventory

Class Dismissed ................................................................ 4:50

Chapter 1: Setup ................................................................................................ 1

Chapter 12: Money Out I ................................................................................ 91

About Real World Training

Page 2 QuickBooks Online Setup - Day 1: Chapter 1

Desktop Editions (Pro, Premier, Enterprise Solutions)

Mastering QuickBooks Online Level 1 Page 3

Step 1: Create QuickBooks Account

Choose an Edition and Start a Free Trial

Page 4 QuickBooks Online Setup - Day 1: Chapter 1

Mastering QuickBooks Online Level 1 Page 5

Accountant View vs. Business View

Page 6 QuickBooks Online Setup - Day 1: Chapter 1

Mastering QuickBooks Online Level 1 Page 7

Export Company File to QuickBooks Online

Page 8 QuickBooks Online Setup - Day 1: Chapter 1

Before you Convert to QuickBooks Online

After you Convert

Mastering QuickBooks Online Level 1 Page 9

Select the kind of data you want to import into QuickBooks.

Page 10 QuickBooks Online Setup - Day 1: Chapter 1

Enter Journal Entry for Opening Balances

Mastering QuickBooks Online Level 1 Page 11

Link Bank Account

Test Drive QuickBooks Online

Start Test Drive

Page 12 QuickBooks Online Setup - Day 1: Chapter 1

Display the Home Page

Page 14 Getting Around - Day 1: Chapter 2

Mastering QuickBooks Online Level 1 Page 15

Page 16 Getting Around – Day 1: Chapter 2

Gear Menu (aka. Company Menu)

Mastering QuickBooks Online Level 1 Page 17

What You See on a Transaction